Japan, with one of the largest economies in the world accounts for an outsize portion of all luxury goods sales- last year about a quarter of luxury products were bought by the Japanese. Following the disasters, the Japanese priorities have changed routes and now have a different outlook.
Japan counts for an average of 13% of total profit for companies in the luxury industry like- Louis Vuitton, Hermes, Coach and Tiffany. In 2010, Japanese consumers at home and abroad accounted for 24 percent of all luxury goods sales.
Though luxury products are viewed as products for the upper class in other countries, in Japan, they have long been seen as an integral part of middle-class life. Middle-class consumers often cut back on vacations and expensive meals so they are able to buy luxury clothes or handbags. Now the Japanese are in a new reality- ending the materialist wants and focusing on helping others and bringing Japan back to basics.
1 comment:
I had no idea how pivotal the Japanese were to the luxury industry. I'm sure the events will have greater than expected effects on the market for luxury goods. This disaster has affected so many of the Japanese people that it seems like it will be hard for a person to think about buying luxury goods when his or her neighbor doesn't have a home.
The luxury companies have shown to be heavily investing their efforts in China. This massive untapped market could be enough to offset the losses seen in Japan, but they will most likely come at a later time.
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